Become A Discriminating Chocolate Consumer

Buy a chocolate bar and only 3% of the price usually pays for the raw ingredients (cocoa, butter, milk, and sugar). Buy a chocolate bar that comes from one country, such as Madagascar, where the cocoa is processed and the bar is manufactured and more people are employed, companies make more money, and countries collect more taxes.

     When there is more money to be made, why don't the many cocoa growers in Ghana, Ivory Coast, Madagascar, Sao Tome and Principe, Papua New Guinea, Grenada, Venezuela, Colombia, Peru, Ecuador, Brazil, and Vietnam become single origin chocolate producers for the chocolate bar, bulk cocoa, and fine chocolates market?

     The obstacles are many. Dedicated people have to prune, deliver, and peel cocoa beans. Since the manufacturing process determines the finished chocolate product's taste, setting up a factory requires a major amount of investment and production expertise. Current labeling doesn't help consumers determine if the raw cocoa and the finished chocolate product come from the same country. Finally, there is the challenge of breaking into European and US markets dominated by companies, such as Hershey.

     Nonetheless, kids search for Pokemon Go characters, why not look for African stores that carry Chocolat Madagascar chocolate bars?

Chocolate Tasting Party and More

Controversy about the taste of $10 chocolate bars produced by Rick and Michael Mast in the Bronx, USA, suggests kids throughout the globe might enjoy their own chance to sample the world's chocolate.

     Mast's chocolates claim to be made from paste of melted chocolate from Valrhona, a company chef Alberic Guironnet founded in France in 1922. The Mast bars come in three flavors: dark, almond, and goat's milk.

     Other expensive chocolates, often found at airport newspaper shops, are Scharffen Berger Extra Dark and Green & Black's Dark.

     Less expensive chocolates can be found in a bag of Nestle's morsels used to make chocolate chip cookies, Hershey's bars, and Mars bars.

     Serrv (serrv.org/chocolate), a fair trade nonprofit organization, provides a wide variety (dark, dark with mint, dark with raspberries, milk chocolate with hazelnuts, etc.) of Kosher-certified, 3 and a half oz. $3 bars. Serrv bars use cocoa produced by the Kuapa Kokoo cooperative in Ghana, Africa, which strives to increase the earnings of cocoa farmers and to run programs designed to bolster the confidence of women cocoa farmers.

     While sampling a piece or two of chocolate candy or building replicas of the Leaning Tower of
Pisa or Great Wall of China out of chocolate (like those shown in the February, 2016 issue of National Geographic Kids), there are a few things about chocolate to consider. Chocolate was a popular food of the Maya people who lived in what is now Mexico and Central America over a thousand years ago. The Mast brothers say they learned small-batch chocolate making by studying methods used by Mayans.

     Fast forward to 2015. Ghana and the Cote d' Ivoire account for at least half of the world's cocoa that goes into chocolate. Much of the rest comes from Brazil, Nigeria, and Cameroon. In Africa cocoa bean farmers are not being replaced by younger farmers, because the income they earn keeps them below the $2 a day global poverty level. Ghana's cocoa farmers can earn as little as 84 cents a day; in the Ivory Coast, earnings may be 50 cents a day. A video produced in mid-2014 showed how excited cocoa farmers in the Ivory Coast were when, for the first time in their lives, they tried chocolate made from the beans they grew and harvested.

     The 2015 Cocoa Barometer report (cocoabarometer.org) issued by non-governmental organizations describes how the concentration of 80% of the cocoa-to-chocolate retail chain in a few companies provides no incentive to raise cocoa farmer incomes, to end child labor, to increase crop diversification, to improve infrastructure, or to provide market information for farmers.

             (Chocolate also is the subject of the earlier post, "Chocolate's Sweet Deals.")

   

Chocolate's Sweet Deals

In addition to giving boxes of chocolates as gifts this holiday season, consider giving stocks in cocoa processing plants. But keep an eye on the competition, since the growing demand for chocolate among billions of people in emerging markets, which is expected to increase cocoa processing by 15% in the next ten years, can raise prices on the supply of cocoa beans which has suffered from drought conditions, and it will put a squeeze on profits.

     As an example of increased competition, check out how Olam International, headquartered in Singapore, has just become a major competitor with Barry Callebaut AG and Cargill Inc. In addition to shelling out $176 million to a U.S. peanut processor, Olam, which recently purchased the cocoa unit of Archer-Daniels-Midland for $1.3 billion, now has eight cocoa processing plants, including one in the Ivory Coast. The U.S. recently acted to block imports of the UK's Cadbury chocolate which has a higher fat content and creamier taste than Hershey's chocolate. Hershey claimed Cadbury's product names and packaging infringed on their trademark rights and licensing agreements.

     Based on projections of a growing demand for chocolate in emerging markets, there is an opportunity for cocoa bean growers in developing countries, by themselves or in conjunction with major processors, to set up their own plants to satisfy local demand. Further, since chocolate can melt when transported in warm weather, local producers have a major incentive to supply emerging markets with locally-produced chocolate products.

     The Kuapa Kokoo Cocoa Cooperative in Ghana, Africa, is already a working model of how cocoa growers can benefit by developing a relationship with processors and distributors. Before selling to the cooperative, growers were at the mercy of a state cocoa buying company that did not always pay on time and sometimes cheated when weighing their cocoa beans. Now, the cooperative, working with Divine Chocolate and the fair trade company, SERRV, (serrv.org/divine), participates in the profits generated from the production and marketing of a wide variety of gourmet chocolate bars, chocolate mint thins, Kosher certified milk and dark chocolate coins, and a day-by-day, chocolate heart-filled Advent calendar.

     For other ideas of how to make a profit in Africa, see the earlier blog posts, "Never Too Young to Invest in the Future" and "Discover Africa."